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Into thin air…

Since 1999, Mesa Air (MESA) has had an arrangment with a privately held company called Barlow Capital to provide what the company describes as “financial advisory services related to aircraft leases, mergers, and acquisitions.” In fiscal 2004, Mesa paid Barlow nearly twice as much as they did in fiscal 2003, according to the proxy filed earlier today. As the proxy notes, substantially all of Barlow’s revenues come from Mesa and two of Mesa’s top executives — CEO Jonathan Ornstein and CFO George Murname each owned 25% of Barlow at the end of the fiscal year on Sept. 30, 2004. But the proxy notes that the two execs have disposed of their interest in Barlow. So who owns Barlow now and what relationship will Mesa have with the company going forward? Will revenues double again in the current fiscal year? Given that Ornstein and Murname have disposed of their interest in Barlow, Mesa investors are unlikely to see any mention of the company in future filings.